The deadline for filing and paying taxes, as well as for making IRA and health savings account contributions for 2022, is therefore July 31 for eligible taxpayers.

The IRS has extended the deadline for filing federal individual and business tax returns and making tax payments to July 31, 2023, for individuals and businesses residing or operating in Cross, Lonoke, and Pulaski counties in Arkansas.

Any area that has been identified by the Federal Emergency Management Agency (FEMA) as being affected by the tornadoes and severe storms that occurred on March 31 is eligible for assistance from the IRS. Any additional areas added to the disaster area will also have the same relief available. On the IRS.gov disaster relief page, you can always find the most recent list of eligible localities.

The tax relief postpones the deadlines for tax filing and payment, which were to take effect on March 31, 2023. The recent changes in tax laws have extended the deadline for affected individuals and companies to file their tax returns and pay any taxes due during that period until July 31, 2023. Additionally, several business returns that were previously due on April 18, 2022, will now have the same July 31 deadline. Means who qualify will have extra time to contribute to their IRA’s and health savings accounts for the 2022 year.

The July 31 deadline also applies to quarterly payroll and excise tax returns, which normally due on April 30, 2023. In addition, penalties for payroll and excise tax deposits due on or after March 31 but before April 18 are waived if the deposits are made by April 18, 2023. 

The Disaster Assistance and Emergency Relief for Individuals and Businesses page details other returns, payments, and tax-related actions that qualify for the extra time.

Some taxpayers may require additional time to file after the July 31 deadline. If this is the case, the IRS advises them to make the request electronically before the original April 18 deadline. There are two uncomplicated and cost-free methods to accomplish this task, the IRS Free File and the IRS Direct Pay. These options are exclusively accessible on the official website of the Internal Revenue Service (IRS), for more information, go to IRS.gov/extensions. 

Taxpayers in disaster areas may only submit their requests for extensions on paper after April 18 and before July 31.

Taxpayers in disaster areas receive automatic relief from filing and penalty requirements. There is no need for the taxpayer to contact the agency to receive this relief. However, if the taxpayer receives a notice from the IRS about a penalty related to a late filing or payment. The original or extended deadline falls within the postponement period. They should contact the IRS at the number provided on the notice to request the penalty be waived.

The IRS will also provide assistance to taxpayers who do not reside in the disaster area. We require you to meet a deadline during the postponement period and have your records located there. These taxpayers should contact the IRS at 866-562-5227 to request relief. Workers who are assisting with relief efforts, affiliated with a recognized government or charitable organization also eligible for this relief.

Individuals and businesses in an area declared a federal disaster, who suffered uninsured or unreimbursed disaster-related losses, are eligible. May choose to claim them on either the return for the year. In this case, taxpayers typically file their 2023 return in early 2024, or their return for the previous year (2022 return) in 2023. On any return claiming a loss, including the FEMA declaration number – 4698-DR. For more information, see Publication 547. 

Tax relief based on FEMA damage assessments is part of a coordinated federal response to storm damage. Visit DisasterAssistance.gov for more information on disaster recovery.

The tax laws are very complex. Our short blog articles can only partially cover all the rules and nuances. Your specific facts may hold various opportunities and possible risks that only experienced, and highly qualified tax specialists can spot. We encourage you to find such help, rather than trying to figure it all out alone. Consider trying the IfindTaxPro marketplace by posting your project and signing up here. 

If you are a licensed tax professional interested in helping others either part or full-time, or ad hoc, come on in! Happy to have you. Our marketplace has the full suite of tools to communicate with clients including compliance calendars, task and message management, and billing. You can also quickly connect to knowledgeable colleagues who can complement your services with the ones you do not provide. Register here.